Want to see HK:0406 full AI Analyst Report?
Yau Lee Holdings Limited (0406) AI Stock Analysis
Yau Lee Holdings Limited
(HKEX:0406)
The score is primarily held down by weakened financial performance: margin compression, back-to-back net losses, and materially higher leverage reduce flexibility despite strong revenue growth and a 2026 cash flow rebound. Technicals are mildly weak (below key longer-term averages with slightly negative MACD), and valuation is constrained by negative earnings and no provided dividend yield.
Yau Lee Holdings Limited (0406) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 216.84M
- Dividend Yield
- ―
- Average Volume (3M)
- 52.71K
- Price to Earnings (P/E)
- -1.1
- Beta (1Y)
- 0.10
- Revenue Growth
- 13.50%
- EPS Growth
- -106.11%
- Country
- Hong Kong
- Employees
- 4,500
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Engineering & Construction
Yau Lee Holdings Limited Business Overview & Revenue Model
Company Description
Yau Lee Holdings Limited, established in 1958 and headquartered in Kowloon Bay, Hong Kong, functions as an investment holding company. Its primary business centers on the construction industry, with operations spanning Hong Kong, Macau, Singapore, an...
How the Company Makes Money
The company primarily makes money through contracting revenue earned from delivering construction and engineering projects. Its core revenue model is project-based: it bids for and is awarded contracts, then recognizes revenue as it performs work (ty...
Yau Lee Holdings Limited Financial Statement Overview
Summary
Despite strong revenue growth, profitability has deteriorated into net losses (worsening in 2026) with operating margins turning negative and gross margin compression. Leverage has risen sharply (debt-to-equity up to ~2.6x in 2026) alongside declining equity, while cash flow rebounded in 2026 after multiple years of negative OCF/FCF, leaving an overall weak but mixed financial profile.
Income Statement
38NegativeBalance Sheet
32NegativeCash Flow
41Neutral| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.92B | 10.92B | 9.62B | 7.81B | 6.69B | 6.73B |
| Gross Profit | 447.38M | 447.38M | 134.94M | 682.48M | 552.31M | 659.23M |
| EBITDA | -48.72M | -52.26M | 150.21M | 226.98M | 185.12M | 211.00M |
| Net Income | -203.77M | -203.77M | -98.88M | 67.09M | 49.64M | 68.19M |
Balance Sheet | ||||||
| Total Assets | 7.17B | 7.17B | 6.57B | 5.73B | 4.85B | 4.74B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.13B | 718.65M | 905.59M | 742.58M | 934.31M |
| Total Debt | 3.23B | 3.23B | 2.79B | 2.31B | 1.38B | 1.35B |
| Total Liabilities | 5.94B | 5.94B | 5.20B | 4.22B | 3.35B | 3.20B |
| Stockholders Equity | 1.23B | 1.23B | 1.38B | 1.51B | 1.51B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | -86.56M | 21.81M | -450.67M | -623.19M | -285.56M | 750.49M |
| Operating Cash Flow | 17.50M | 125.87M | -280.08M | -463.32M | -237.30M | 813.44M |
| Investing Cash Flow | -101.81M | -94.33M | -133.15M | -148.43M | -26.21M | -20.28M |
| Financing Cash Flow | 434.93M | 342.84M | 270.77M | 791.25M | 25.95M | -517.72M |
Yau Lee Holdings Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0406, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.51, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0406.
Yau Lee Holdings Limited Peers Comparison
Overall Rating
HK:024084Outperform
HK:331174Outperform
HK:068771Outperform
HK:061054Neutral
HK:089647Neutral- HK:040642Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0240 | 84Outperform | HKD 1.73B | 3.76 | 15.72% | 12.19% | -12.79% | -0.62% |
| HK:3311 | 74Outperform | HKD 45.85B | 5.36 | 10.83% | 7.08% | -14.20% | -12.79% |
| HK:0687 | 71Outperform | HKD 1.08B | 23.19 | 4.18% | 18.75% | -18.58% | -27.75% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| HK:0610 | 54Neutral | HKD 725.71M | 0.94 | 31.00% | ― | -12.39% | ― |
| HK:0896 | 47Neutral | HKD 316.56M | -0.35 | -31.01% | ― | -22.33% | -203.23% |
| HK:0406 | 42Neutral | HKD 216.84M | -1.07 | -15.28% | ― | 13.50% | -106.11% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0406 | Yau Lee Holdings Limited | 0.49 | -0.20 | -29.29% | |
| HK:0240 | Build King Holdings | 1.39 | -0.01 | -0.43% | |
| HK:3311 | China State Construction International Holdings | 8.68 | 0.33 | 3.90% | |
| HK:0896 | Hanison Construction Holdings | 0.29 | 0.05 | 19.43% | |
| HK:0610 | Wai Kee Holdings Limited | 0.92 | 0.16 | 20.39% | |
| HK:0687 | Tysan Holdings Limited | 0.32 | 0.05 | 17.65% |
Yau Lee Holdings Limited Corporate Events
Yau Lee Wins Unanimous Shareholder Backing for AGM Resolutions and Capital Mandates
Yau Lee Holdings Limited reported that all resolutions proposed at its annual general meeting on 17 August 2026 were approved by shareholders through a poll, reflecting unanimous support from the 276,071,515 votes cast. The meeting received and adopt...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 17, 2026